The Real Estate Investment Trusts (REITs) listed on the Saudi Stock Exchange (SET) recorded a remarkable performance during 2025, with strong net profit growth despite continued financing pressures and high borrowing costs. This performance points to the sector's ability to adapt to a higher interest rate environment and improve the efficiency of managing real estate assets, at a time when REITs are becoming increasingly important as a key investment vehicle in the Saudi real estate market.
435 million riyals profits of 20 funds
The annual financial statements of 20 REITs listed on the Saudi Stock Exchange showed a total net profit of 435 million riyals in 2025, compared to 286 million riyals in 2024, an annual increase of 149 million riyals, representing a growth of 52%. This growth came despite the increase in financing costs by 11.7% to reach SAR 739 million, compared to SAR 661 million in the previous year, driven by higher interest rates and an increase in outstanding loans on the funds, as the balance of loans reached SAR 11 billion by the end of 2025, compared to SAR 9.97 billion in 2024, an increase of 10.4%.
The balance of loans reached SAR 11 billion by the end of 2025, compared to SAR 9.97 billion in 2024, an increase of 10.4%.
Performance growth of 8 funds
At the level of fund performance, 8 funds managed to achieve growth in net profits by varying percentages, where SEDCO Capital REIT led the scene with its profits rising to 79 million riyals compared to 14 million riyals in 2024, followed by Al Jazeera REIT, which doubled its profits to 7 million riyals compared to 3 million riyals, then Jadwa REIT Haramain, whose profits rose to 31 million riyals compared to 18 million riyals. Other funds recorded varying growth, including Waha REIT, Bunyan REIT, Jadwa REIT Saudi Arabia, and Taaleem REIT, while Alinmaa Hotel REIT's profits stabilized at SAR 49 million.
Profits of 6 funds declined
In contrast, the profits of 6 funds declined during the year, as Al Rajhi REIT's profits decreased to SAR 147 million compared to SAR 187 million, Al Ahli REIT's profits decreased to SAR 18 million compared to SAR 27 million, and the profits of Alkhabeer REIT, Daraya REIT, Al Maather REIT and MEFIC REIT decreased by varying percentages, reflecting the different operating performance between funds depending on the nature of their real estate assets, occupancy level and operating returns.The year saw two funds turn to losses, as Alinma Retail REIT recorded a loss of SAR 21 million after having achieved a profit of SAR 8 million in 2024, and Mulkia REIT turned to losses of SAR 28 million compared to a net profit of SAR 15 million in the previous year, an indication of the challenges facing some real estate sub-sectors.
Returned to losses of SAR 28 million compared to a net profit of SAR 15 million in the previous year, an indication of the challenges facing some real estate sub-sectors.
3 funds cut losses
At the same time, three funds managed to cut their losses significantly, as Al Azizia REIT cut its losses to just SAR 1 million from SAR 115 million in 2024, Riyadh REIT cut its losses to SAR 13 million from SAR 187 million, while Investment REIT's losses improved slightly. In contrast, Musharaka REIT recorded a sharp rise in its losses to SAR 110 million compared to SAR 22 million in the previous year, representing a significant increase in losses.
